H.R. 5317

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5317 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 5317

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 21, 2026

Received; read twice and referred to the Committee on Banking, Housing, 
and Urban Affairs

_______________________________________________________________________

AN ACT

To amend the Federal Deposit Insurance Act to ensure that certain 
custodial deposits of well capitalized insured depository institutions 
are not considered to be funds obtained by or through deposit brokers, 
and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Community Bank Deposit Access Act of 
2025''.

SEC. 2. LIMITED EXCEPTION FOR CUSTODIAL DEPOSITS.

(a) In General.--Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible 
institution shall not be considered to be funds obtained, 
directly or indirectly, by or through a deposit broker to the 
extent that the total amount of such custodial deposits does 
not exceed an amount equal to 20 percent of the total 
liabilities of the eligible institution.
``(2) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial 
deposit' means a deposit that is not deposited at an 
insured depository institution in return for fees paid 
by the insured depository institution pursuant to an 
agreement with a third party and that would otherwise 
be considered to be obtained, directly or indirectly, 
by or through a deposit broker, if the deposit is 
deposited at 1 or more insured depository institutions, 
for the purpose of providing or maintaining deposit 
insurance for the benefit of a third party, by or 
through any of the following, each acting in a formal 
custodial or fiduciary capacity for the benefit of a 
third party:
``(i) An insured depository institution 
serving as agent, trustee, or custodian.
``(ii) A trust entity controlled by an 
insured depository institution serving as 
agent, trustee, or custodian.
``(iii) A State-chartered trust company 
serving as agent, trustee, or custodian.
``(iv) A plan administrator or investment 
advisor, acting in a formal custodial or 
fiduciary capacity for the benefit of a plan.
``(B) Eligible institution.--The term `eligible 
institution' means an insured depository institution 
that accepts custodial deposits, if the insured 
depository institution has less than $10,000,000,000 in 
total assets as reported on the consolidated report of 
condition and income as reported quarterly to the 
appropriate Federal banking agency and--
``(i)(I) when most recently examined under 
section 10(d) was assigned a composite rating 
of 1, 2, or 3 under the Uniform Financial 
Institutions Rating System (or an equivalent 
rating under a comparable rating system); and
``(II) is well capitalized; or
``(ii) has obtained a waiver pursuant to 
subsection (c).
``(C) Plan.--The term `plan' has the meaning given 
the term in section 3 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan 
administrator' has the meaning given the term 
`administrator' in section 3 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1002).
``(E) Well capitalized.--The term `well 
capitalized' has the meaning given the term in section 
38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is 
further amended by adding at the end the following:
``(k) Restriction on Interest Rate Paid on Certain Custodial 
Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible 
institution', and `well capitalized' have the meanings 
given those terms in subsection (j); and
``(B) the term `covered insured depository 
institution' means an insured depository institution 
that while acting as an eligible institution under 
subsection (j), accepts custodial deposits while not 
well capitalized.
``(2) Prohibition.--A covered insured depository 
institution may not pay a rate of interest on custodial 
deposits that are accepted while not well capitalized that, at 
the time the funds or custodial deposits are accepted, 
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of 
interest referred to in paragraph (2) shall be not greater 
than--
``(A) the rate paid on deposits of similar maturity 
in the normal market area of the covered insured 
depository institution for deposits accepted in the 
normal market area of the covered insured depository 
institution; or
``(B) the national rate paid on deposits of 
comparable maturity, as established by the Corporation, 
for deposits accepted outside the normal market area of 
the covered insured depository institution.''.

SEC. 3. DISCRETIONARY SURPLUS FUND.

(a) In General.--The dollar amount specified under section 
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is 
reduced by $4,000,000.
(b) Effective Date.--The amendment made by subsection (a) shall 
take effect on September 1, 2036.

Passed the House of Representatives May 20, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.